Malaysia Development May Delay Over US$3 Billion IPO of Power Assets to Next Year – Sources

P.R. Venkat and Jason Ng were first to report that 1Malaysia Development Bhd. is likely to defer an initial public offering of its power assets that is expected to raise in the neighborhood of $3 billion.

The article as it appeared on Dow Jones:

16:55 HKT: *1Malaysia Development May Delay Over US$3 Billion IPO of Power Assets to Next Year – Sources
16:55 HKT: *1Malaysia Development Planned IPO May Be Delayed to 1Q 2015 From This Year – Sources
17:02 HKT: Malaysia Investment Firm 1MDB Set to Defer Power IPO

By P.R. Venkat in Singapore And Jason Ng in Kuala Lumpur

1Malaysia Development Bhd. is likely to defer an initial public offering of its power assets that aims to raise over $3 billion, dealing another setback to what would have been the largest share sale in Southeast Asia this year.

The state-owned investment firm, also known as 1MDB, had originally sought a listing this year but the IPO is now set to take place in the first quarter of 2015 at the earliest, people with knowledge of the deal said Monday. One of the reasons for the delay is that 1MDB is still negotiating the terms of a loan it is seeking from its banks.

1MDB has also yet to apply for listing approval from Malaysian securities regulators including the stock exchange, the people added.

The deal could have catapulted Malaysia to the top IPO venue in Southeast Asia in terms of funds raised. Last year, Malaysia ranked third, with 16 IPOs raising a total of $2.60 billion. So far this year, companies have raised only $1.24 billion in Malaysia, according to data from Dealogic. As recently as 2012, the country was home to $12 billion in listings.

1MDB didn’t immediately respond to requests for comment.

Write to P.R. Venkat at venkat.pr@wsj.com and Jason Ng at jason.ng@wsj.com

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